Drylock paint is not made for floors. It has a warning on the label stating so. The warning specifically states "DO NOT USE ON FLOORS, even if floor will be carpeted, tiled or painted. Drylock Masonry Waterproofer is not formulated to withstand foot traffic." (Emphaiss in original) (I have a can of the Oil Based Drylock in front of me from which I am reading.)
That said, I have used it for floors (e.g., in an intake plenum and under kitchen cabinets--both with no foot traffic), and I have friends who have used it for floors when they have covered the Drylock with, say, builders felt, plastic sheeting, and then wood floors. The warning might just be there to clarify for legal purposes that the waterproofing guarantee does not apply to floors, but it does specifically say "even if" covered, meaning that even indirect foot traffic might be a problem.
You should also clarify whether the dampness is from the subsurface (coming up from below because you are below or close to the water table) or from stuff in the basement (combination of sump pump, washer/dryer, inadequate ventilation, etc.). Doing so will almost answer your own question on whether you even need some sort of water proofing layer. Indeed, you might NOT want to waterproof the floor because doing so will trap water and prevent it from draining via gravity. (Depends largely on your elevation and the water table level). Remember, water will usually "want" to drain through the floor even in a damp basement due to gravity.
Also, ventillation and dehumidification often solves the problems of a damp basement so that you don't need to worry about the flooring material. Then you also don't need to deal with a damp basement, as well.